DOE scuttles $1B in Texas clean energy funding
The U.S. Department of Energy has canceled $3.7 billion in clean energy projects nationwide, including more than $1 billion tied to facilities in Texas.
Why it matters: The elimination of the 24 projects created under the 2021 bipartisan infrastructure law is among the biggest and most specific cases yet of Trump 2.0 officials pulling the plug on the Biden administration's unprecedented subsidies for low-carbon energy.
Context: The department was aiming to close the Office of Clean Energy Demonstrations and terminate nearly half its awarded funding, Axios Pro reported last month.
Driving the news: The terminated support was aimed mostly at carbon capture and various other "decarbonization initiatives," DOE said in a statement.
DOE alleged that Biden officials "failed to conduct a thorough financial review" and noted that 16 of the awards were "signed" between the election and President Trump's inauguration.
Zoom in: Texas saw four projects terminated, including three near Houston:
Calpine Texas CCUS Holdings, Baytown – $270 million.
Exxon Mobil Corporation, Baytown – $331.9 million.
Orsted Star P2X, Chambers County – $99 million.
Eastman Chemical Company, Longview – $375 million.
What they're saying: "Today, we are acting in the best interest of the American people," U.S. Secretary of Energy Chris Wright said in the announcement.
The DOE said in the statement the projects "were not economically viable and would not generate a positive return on investment of taxpayer dollars."
The other side:"The abrupt termination of $3.7 billion in clean energy investment is shortsighted and malicious," said Rep. Marcy Kaptur, the top Democrat on the House Appropriations Committee's energy panel.
What we're watching: Other projects that could be on the chopping block.
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